Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have ever owned a credit card you probably already have learned this the hard way. If you have not owned a credit card previously you should definitely learn all you can about these convenient little suckers (literally) before you commit to any contract.

While not all credit cards are the same many do have similar things in common. For instance they will all charge you interest on your purchases. The only difference there is the amount of interest and how long after you make your purchase that you begin getting charged the interest.

Most people assume that they will not be charged interest for at least a month. This is called the grace period. The thing is that not all credit cards have the same length of grace period. Some companies have 15-day grace periods and others have none at all. This is the kind of thing that you need to find out before you ever make a charge on your card.

When you apply for a credit card you may be offered a lower interest rate. This "introductory rate," as it is called, is most likely only temporary. Once you have owned the card for a few months your interest rate will go up substantially. And the thing is that credit card companies can change their interest rates whenever they feel like it. Did you know that? It's true.

There is a clause in most credit card contracts that allow for the lender to up their interest rates at any time as long as they give you 15 days notice. No matter what rate is quoted in your contract they have this right.

One of the common myths people succumb to when using their credit card is the belief that paying of your balance every month is a good thing. Well, surprise, it's not. People who do not carry a balance on their cards are considered to be "deadbeats/" That's right the responsible, conscientious people are the bad guys. Creditors don't like them because by paying off their balance all of the time they are not letting the lenders make any money off of them. The interest is why they give you credit in the first place, that is their bread and butter. If you were not paying interest why would they want to bother with you?

If you are a deadbeat there is a better chance of your credit card company raising your interest rate or even eliminating your grace period. You might even begin to be charged annual fees for your card. Credit is not free after all.

Credit cards are a great tool to have at your disposal. They can help you get out of a jam quickly and easily, but don't let yourself get carried away by the convenience that they offer. Try to keep your credit card spending to a minimum and you will find in the end you are much better off.

Martin Lukac, represents, #1 Loans USA, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more: http://www.1LoansUSA.com

---

Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus... Read More

Clean Credit Report: Easily Raise Your Credit Score 100 points

Clean Credit Reports, your credit report contains information about where... Read More

All About Balance Transfers

What is a balance transfer?A balance transfer can be explained... Read More

Everything You Always Wanted To Know About Your Credit Report

Your credit report is a very powerful report that essential... Read More

How to Dispute Credit Report Errors

Your credit report--a type of consumer report--contains information about where... Read More

Your Guide On Choosing a Credit Card To Suit You

Reach into your wallet or purse, pull out a card,... Read More

Improving Your Credit Report

Even if you think you have a wonderful credit report,... Read More

Recognizing the Signs that You Might Need Credit Counseling

Most families in America today have a credit card; some... Read More

Convenience Can Be Costly

You've just opened your credit card bill and attached to... Read More

How To Boost Your Credit Score

Years ago your credit score was a big secret, known... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

Credit Report ? How Your Credit Score is Determined

Most consumers are aware that they have something known as... Read More

How Your Credit Rating Affects You, and How to Check It

You might not know it, but every time you take... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

What Does Your Credit Say About You?

A credit report is more than just a snapshot of... Read More

Will Inquiries Lower Your Credit Score?

What are inquiries?When you apply for credit the creditor or... Read More

5 Surefire Ways To Eliminate Credit Card Debt

Do you have enormous credit card debt? You are certainly... Read More

Student Credit Cards 101

If you're a college student, you probably already have a... Read More

Which Credit Bureau Should I Use To Check My Credit Report?

There are three main credit bureaus in the United States;... Read More

Avoiding ID Theft and Credit Fraud

Article excerpted from the new book, "How to Do Space... Read More

Is Plastic Making You Happier?

If you're like most people, you probably own at least... Read More

How To Use Your Credit Cards Wisely

Are you one of the thousands pulling your hair out... Read More

Rebuild Your Credit the Right Way the First Time

If you are one of the millions of people out... Read More

Establishing Credit ? What You Need To Know Part 2

In my previous article "Establishing Credit ? What You Need... Read More

How Your Credit History Can Affect Your Life

Your credit history is an important aspect of your life.... Read More

Identity Theft ? Who Would Want Mine?

With all my bills who would possibly want my credit?... Read More

Simple Identity Theft Protection

How many of you bank, shop, or transact other business... Read More

Is it Safe to Use Online Car Finance?

Online car finance is convenient. You can apply over the... Read More

Teaching Students To Keep Out Of Credit Card Debt - The Parents Role

Parents have the full responsibility for their children and their... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might... Read More

What Can Happen to You as a Victim of Identity Theft, Facts & Figure

Is identity theft really that serious? Thousands of people every... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

Commercial Collections And Credit Granting

It is estimated that billions of dollars in delinquent commercial... Read More